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Evolutionary Stability in Common Pool Resources

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  • Jean-Philippe Atzenhoffer
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    Abstract

    The Tragedy of the Commons refers to the dissipation of a common- pool ressource when any appropriator has free access to it. Under the behavior of absolute payoff maximisation, the common-pool resource game leads to a Nash equilibrium in which the resource is overexploited. However, some empirical studies show that the overutilization is even larger than the Nash equilibrium predicts. We account for these results in an evolutionary framework. Under an imitation-experimentation dynamics, the long run stable behavior implies a larger exploitation of the resource than in the classical Nash equilibrium.

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    Bibliographic Info

    Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2008-21.

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    Date of creation: 2008
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    Handle: RePEc:ulp:sbbeta:2008-21

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    Keywords: common-pool resource; imitation behavior; evolutionary stable strategy; evolutionary games.;

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    1. Burkhard Hehenkamp & Wolfgang Leininger & Alex Possajennikov, 2003. "Evolutionary Equilibrium in Tullock Contests: Spite and Overdissipation," Discussion Papers in Economics, University of Dortmund, Department of Economics 03_01, University of Dortmund, Department of Economics.
    2. Joëlle Noailly & Cees Withagen & Jeroen Bergh, 2007. "Spatial Evolution of Social Norms in a Common-Pool Resource Game," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 36(1), pages 113-141, January.
    3. Ellison, Glenn, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 67(1), pages 17-45, January.
    4. Wolfgang Leininger, 2006. "Fending off one means fending off all: evolutionary stability in quasi-submodular aggregative games," Economic Theory, Springer, Springer, vol. 29(3), pages 713-719, November.
    5. Ito, Masaru & Saijo, Tatsuyoshi & Une, Masashi, 1995. "The Tragedy of the Commons revisited Identifying behavioral principles," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 28(3), pages 311-335, December.
    6. Carlos Alós-Ferrer & Ana Ania, 2005. "The evolutionary stability of perfectly competitive behavior," Economic Theory, Springer, Springer, vol. 26(3), pages 497-516, October.
    7. Pingle, Mark & Day, Richard H., 1996. "Modes of economizing behavior: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 29(2), pages 191-209, March.
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